Fraud lands Adrian businessman in prison

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By Daily Telegram Staff

The Daily Telegram - Adrian, MI

By Daily Telegram Staff

Posted Nov. 23, 2013 at 12:00 PM

By Daily Telegram Staff

Posted Nov. 23, 2013 at 12:00 PM

DETROIT

An Adrian business owner was sentenced to six years in a federal prison and ordered to pay more than $17.6 million in restitution for false tax return and health care fraud convictions in United States District Court in Detroit.

Jason Syrek admitted committing the fraud from May 2008 through December 2010 while operating CAS Resources in Adrian. The company provided human resource services to other businesses, such as payroll taxes and health care insurance coverage. He admitted taking millions of dollars in funds intended for taxes and for payments to Blue Cross and Blue Shield of Michigan.

Syrek used the money to buy beachfront properties in Florida, several cars, a boat and investment properties, according to a news release from U.S. Attorney Barbara McQuade.

In order to pay his debt, Syrek will forfeit his homes, beach properties in Florida, a 32.5-foot Sea Ray Boat and cars that include a 2008 Ferrari F430 and 2008 Porsche Boxster. The property forfeitures are part of a sentence handed down on Nov. 4.

“Fraud schemes like this one may involve sophisticated methods, but they are nothing more than stealing. This defendant robbed health care programs and taxpayers for his personal benefit,” McQuade said.

“Syrek’s conduct was egregious in that he effectively stole funds that were withheld on behalf of employees,” said Erick Martinez, an Internal Revenue Service special agent. “His actions cost the government $13.4 million in tax loss alone.”

“Those who commit health care fraud and other related crimes will face severe penalties for their illegal acts,” stated FBI Special Agent in Charge Paul Abbate.

Syrek claimed the fraud was committed in an act of desperation to recover losses in an Internet scam he fell victim to earlier.

“He too was a victim,” said defense attorney Eric Nemeth of Novi in a sentencing memorandum. Nemeth stated Syrek took money from tax and health care funds in his business to invest in a scheme for processing gold dust. The scam went on for years, he said, with more money being demanded from Syrek in order to collect forthcoming massive profits that never materialized.